Chande Dynamic Momentum Index Technical Analysis & Chande DMI Trading Signals
Developed by Tushar Chandes
Chande DMI is similar to Welles Wilder’s RSI, however, there is one very important difference.
Relative Strength Index uses a fixed number of price periods while the Chande Momentum Dynamic Index uses a variable amount of price periods as market volatility changes.
The number of price periods used by this Momentum Index indicator decreases as market volatility increases. This allows the indicator to be more responsive to price changes.
The Chande DMI is more accurate than the RSI, has less whipsaws and is less Choppy
Trading Analysis and How to Generate Trade Signals
Buy Signal
A buy signal is generated when DMI crosses above the 50 level mark.
Buy Signal
Sell Signal
A sell signal is generated when DMI crosses below the 50 level mark.
Sell Trade Signal
What is a Trade Plan? - Writing a Plan Example Template
Alternatives: EA Automated Robots or Copier Trade Signals
